Industrial take-up in the region has increased by 52% in the second quarter, according to a report by DTZ.
Within the UK Property Times Industrial market report it said take-up in the North West reached 1.85m sq ft in the second quarter, covering the three-month period between April and June this year, which DTZ said was driven by demand for well located distribution warehouses including Kimberley-Clark taking 337,000 sq ft on Revolution Park in Chorley.
The global real estate adviser added that overall availability in the region fell 5%, which reflected a clutch of large grade B deals and the lack of new development.
In the UK, the report said overall volume of available space of buildings over 50,000 sq ft fell in the second quarter to sustained high levels of grade A take-up and a reduced rate of return of grade B and C stock.
Total take-up fell 15% although the DTZ report said that a proportion of grade A space remained elevated at 48% of the total, with the outlook for prime headline rents set to remain stable.
The report predicts that the availability of large volumes of grade B space means the UK market will prove to be a battleground for landlords during 2010, with many looking to customise stock to attract smaller local occupiers.
A slowdown in the return of secondhand buildings over 50,000 sq ft back to the market means DTZ anticipates that availability will peak in 2010. Annual take-up in 2010 is set to increase by a third on 2009 volumes, driven mainly by tenants taking grade A or good quality grade B space.
Tony O'Keefe, industrial director at DTZ in Manchester, said: "Given the large volume of secondary space available, landlords will need to continue to offer keen incentives and develop innovative packages in order to differentiate their product.
"However in the medium to long term there is a distinct under supply of land allocated for industrial uses, particularly in the Manchester area, to accommodate larger grade A requirements.
"The release and supply of suitable sites to accommodate future demand will be imperative to maintain Manchester's reputation as a primary distribution location."